i really like this style also, but how to emulate in PS? hmm... tough... well, you would need to use the 'lens blur' filter a bit or guassian blur if you want it out of focus like that, maybe use the lasso and selectively miscolour cetrain parts using 'coloured' curves, use the lasso again to add a partial vignette to one of the sides, play with the contrast a tad, and too add the scratches etc, hmm,, i guess you can use some 'real world' examples, such as take photos of some scratches, and use layers to layer them onto (or behind) your image and experiment with 'blending modes' until you find something that suits you. I guess you can also play with the 'channel' mixer selctively to further distort some of the tones...
parts of that image you posted may be slightly 'unsaturated', again use the lasso tool to partially lower the saturation in some areas....
it is quite hard to achieve I can imagine 
maybe easier if you make a 'pin hole' camera and load it with some velvia
, or go out and buy that 'Lomo' or 'Holga' that I know you really dream of...